News

On 24/03/2020, the European Commission approved the German State aid scheme for farms affected by coronavirus to ensure their viability. The aid takes the form of direct grants, repayable advance or tax and payment advantages. In particular, aid does not exceed €120,000 per company active in the fishery and aquaculture sector and €100,000 per company active in the primary production of agricultural products. For all other companies affected by the coronavirus outbreak aid does not exceed €800,000 per company. According to the European Commission, the German scheme will contribute to managing the economic impact of the coronavirus in Germany, while at the same time complying with the Treaty on the Functioning of the European Union and the conditions set out in the Temporary Framework developed by the Commission in the context of the Coronavirus outbreak in the EU. The Temporary Framework provides for five types of aid which can be granted by Member States: 1. Direct grants, tax and payment benefits (maximum grant amount to EUR 800.000 per company); 2. State guarantees for loans taken by companies from banks (Member States will be able to provide State guarantees to ensure banks keep providing loans to the customers who need them); 3. Subsidized public loans to companies; 4. Safeguards for banks that channel State aid to the real economy; and 5. Short-term export credit insurance. The Temporary Framework will be in place until the end of December 2020, it may be extended if necessary.
More information is available here, here and here.

On 23/03/2020, the Commission issued new practical advice on how to implement its Guidelines for border management, in order to keep freight moving across the EU during the current pandemic. New recommendations should ensure the smoothness of freight transport and the functioning of the food supply chains in the EU. Member States are requested to designate, without delay, all the relevant internal border-crossing points on the trans-European transport network (TEN-T) as ‘green lane' border crossings. The green lane border crossings should be open to all freight vehicles, whatever goods they are carrying. Crossing the border, including any checks and health screening, should not take more than 15 minutes.
More information is available here.

On 26/03/2020, leaders of EU Member States discussed the effects of the current coronavirus crisis during a videoconference, while prime ministers and presidents stressed the need to ensure the functioning of the European Union's Single Market. Any existing barriers should be urgently addressed, especially in the context of the movement of cross-border and seasonal workers and goods.
More information is available here.

The largest European agricultural organization, Copa and Cogeca, called for a Council of Ministers of Agriculture video conference on 25/03/2020 to introduce all available measures that can ensure and support the functioning of the Single Market and the value chain in the EU. According to Copa and Cogeca, these measures should be financed from sources outside the budget of the CAP. Copa and Cogeca highlighted the dramatic slump in the flower market, highlighted the fall in fruit and vegetable prices, and mentioned a change in consumer preferences, which now focus on buying minced meat and processed foods rather than high-quality meat. In order to strengthen its support for the sugar sector, Copa and Cogeca supported the introduction of all available emergency measures, including private storage and import protection, as the sugar market has not yet recovered from the effects of abandoning sugar quotas. Furthermore, Copa and Cogeca supported a two-year transition period for the CAP.
The organization representing young farmers (CEJA), on the other hand, called for the activation of the crisis agricultural reserve (Copa and Cogeca are applying for funding from sources outside the CAP). Moreover, according to CEJA, the amount of the reserve should be increased for 2020.
More information is available here.

Europe's largest agricultural organization, Copa-Cogeca, has pointed out that restrictions on the movement of workers across borders can have a devastating impact on agriculture, with particular impact on the fruit, vegetables and wine sectors. Moreover, the negative effects might not only be relevant for this year, but could also be felt in the coming season. Among the countries most vulnerable to the lack of seasonal workers are Italy and Spain, which have a strong fruit and vegetable sector. About 25% of Italian food production depends on 370,000 workers from other countries, mostly from Romania. France has asked for help from its citizens, some 200,000 jobs normally performed by foreign workers could now be represented by those who temporarily lost their jobs in France due to coronavirus. More than 100,000 French responded to the French Ministry's request within 48 hours (more information here). The UK agricultural sector also depends on seasonal workers to cover around 100,000 jobs.
More information is available here.